Enphase Energy (ENPH) closed the most recent trading day at $58.65, moving +1.37% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 1.12%. Meanwhile, the Dow gained 1.14%, and the Nasdaq, a tech-heavy index, added 1.46%.

Shares of the solar technology company have depreciated by 12.66% over the course of the past month, underperforming the Oils-Energy sector's loss of 5.86% and the S&P 500's loss of 4.13%.

Analysts and investors alike will be keeping a close eye on the performance of Enphase Energy in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.70, indicating a 100% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $359.08 million, up 36.36% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $1.54 billion, which would represent changes of +41.35% and +15.7%, respectively, from the prior year.

Any recent changes to analyst estimates for Enphase Energy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3% lower. Enphase Energy is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Enphase Energy is presently trading at a Forward P/E ratio of 17.29. This valuation marks a premium compared to its industry's average Forward P/E of 8.67.

The Solar industry is part of the Oils-Energy sector. Currently, this industry holds a Zacks Industry Rank of 54, positioning it in the top 22% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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